If, at some interest rate, the quantity of money supplied is less than the quantity of money demanded, people will desire to
a. sell interest-bearing assets, causing the interest rate to decrease.
b. sell interest-bearing assets, causing the interest rate to increase.
c. buy interest-bearing assets, causing the interest rate to decrease.
d. buy interest-bearing assets, causing the interest rate to increase.
b
Economics
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Recall the Application. If the decrease in price of illegal drugs is due to equal changes in demand and supply, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
Economics
The rise in unemployment that occurs because of a recession is known as frictional unemployment
a. True b. False Indicate whether the statement is true or false
Economics